Australian Pharmaceutical Industries (API)

Shares in
Australian Pharmaceutical Industries
have slipped more than 20 per cent this month, despite the company reporting solid first-half results at the end of April. The pharmaceuticals distributor and health and beauty products retailer is still reeling from lost business to
Sigma Pharmaceuticals
. Sigma reportedly extended credit, offered deep discounts on generic drugs and interest-free loans to new customers to win market share but has since been forced to renegotiate borrowing terms with its bankers that led to the resignation of its chief executive, Elmo De Alwis. API shares have failed to rally amid speculation it could now be an acquirer of some of Sigma’s businesses. API reported a 55 per cent increase in first-half net profit to $10.30 million and reiterated its forecast of $24.6 million net profit for financial 2010. Stephen Shore